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Worldsteel expects slightly higher global apparent steel use in 2015

According to the short range outlook of the World Steel Association (worldsteel) for 2015 and 2016, the worldsteel forecasts that global apparent steel use will increase by 0.5 percent to 1.54 billion mt in 2015 following growth of 0.6 percent in 2014. In 2016, it is forecast that world steel demand will grow by 1.4 percent and will reach 1.56 billion mt.

“We are releasing a restrained growth outlook for the global steel industry mainly due to the deceleration in China. The outlook also reflects the influence of major structural adjustments in most economies, particularly owing to limited investment growth post 2008. As these changes take effect, the steel industry will experience a slower pace of growth, it will focus on operational efficiencies and on the value that steel products generate for customers and society,” said Hans Jürgen Kerkhoff, chairman of the worldsteel Economics Committee.

According to worldsteel, the rebalancing of the Chinese economy is inevitable as China enters its next stage of development, but it will take time. In the short term, it has global consequences for the steel industry in terms of trade flows and possible intensification of trade frictions, resulting from significant increases in steel imports in many economies during 2014.

Commenting on the declining oil prices, worldsteel pointed out that its impact varies between countries. On the one hand, it has a negative impact on steel demand for infrastructure investments financed from oil revenues, while, on the other hand, it helps business sectors and consumers in oil importing countries, thus creating better growth prospects.